Cash $227,120 $211,270 Accounts receivable (net) 82,280 75,880 Inventories 232,250 224,660 Investments 0 87,040 Land 119,130...

Cash		$227,120	$211,270
Accounts receivable (net)		82,280	75,880
Inventories		232,250	224,660
Investments		0	87,040
Land		119,130	0
Equipment		256,260	198,630
Accumulated depreciation—equipment		(59,990)	(53,560)
	Total assets	$857,050	$743,920

Liabilities and Stockholders' Equity
Accounts payable		$155,130	$146,550
Accrued expenses payable		15,430	19,340
Dividends payable		8,570	6,700
Common stock, $10 par		46,280	36,450
Paid-in capital: Excess of issue price over par-common stock		173,980	101,170
Retained earnings		457,660	433,710
	Total liabilities and stockholders’ equity	$857,050	$743,920

Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:

Equipment and land were acquired for cash.
There were no disposals of equipment during the year.
The investments were sold for $78,340 cash.
The common stock was issued for cash.
There was a $58,910 credit to Retained Earnings for net income.
There was a $34,960 debit to Retained Earnings for cash dividends declared.

Required:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

Merrick Equipment Co.
Statement of Cash Flows
For the Year Ended December 31, 20Y9
Cash flows from operating activities:
	$
Adjustments to reconcile net income to net cash flow from operating activities:


Changes in current operating assets and liabilities:




Net cash flow from operating activities		$
Cash flows from (used for) investing activities:
	$


Net cash flow used for investing activities
Cash flows from (used for) financing activities:


Net cash flow from financing activities
		$
Cash at the beginning of the year
Cash at the end of the year		$

Expert Solution

A Cash flow statement provides the following information:

1) Information about company's cash receipt and cash payment during an accounting period.

2) Information about company's operating, investing and financing activities.

3) Information access the company's liquidity, solvency and financing flexibility.

Cash flow from operating activities (CFO), consists of the inflows and outflows of cash resulting from transactions that affect a firm's net income.

Cash flow from investing activities (CFI) consists of the inflow and outflows of cash resulting from the acquisition of long term assets and investment.

Cash Flow from financing activities (CFF) consists of the inflow and outflows of cash resulting from transactions affecting a firm's capital structure.

ekkarill92 answered 1 month ago

Describing 1. Accounts receivable— 2. Note receivable— 3. Inventories— 4. Investments— 5. Prepaid expenses— 6. Land—...

Describing 1. Accounts receivable— 2. Note receivable— 3. Inventories— 4. Investments— 5. Prepaid expenses— 6. Land— 7. Equipment, net— 8. Patent— 9. Note payable—$ 10. Interest payable— 11. Common stock—

FERRIS COMPANY HAS CASH OF $70,000, SHORT-TERM INVESTMENTS OF 60,000, NET ACCOUNTS RECEIVABLE OF $86,000, INVENTORY...

FERRIS COMPANY HAS CASH OF $70,000, SHORT-TERM INVESTMENTS OF 60,000, NET ACCOUNTS RECEIVABLE OF $86,000, INVENTORY OF $96,000, PREPAID EXPENSES OF $60,000, ACCOUNTS PAYABLE OF $50,000, UNEARNED REVENUE OF $20,000, NOTES PAYABLE OF $10,000, SALARY PAYABLE OF $6,000, MORTGAGE PAYABLE OF $100,000, BONDS PAYABLE OF $75,000, INCOME TAXES PAYABLE OF $4,000, GROSS SALES OF $520,000, SALES RETURNS OF $8,000 AND SALES DISCOUNTS OF $7,000. LAST YEAR’S NET ACCOUNTS RECEIVABLE WERE $114,000. COMPUTE THE FOLLOWING RATIOS: A. QUICK RATIO B. AVERAGE...

(Cash conversion cycle) Historical data for the firm's sales, accounts receivable, inventories, and accounts payable for...

(Cash conversion cycle) Historical data for the firm's sales, accounts receivable, inventories, and accounts payable for the Crimson Mfg. Company follow: a. Calculate Crimson's days of sales outstanding, days of payables outstanding, and days of sales in inventory for each of the 5 years. (Assume a 365-day year. Hint: Assume that the firm's cost of goods sold equals 70% of sales.) What has Crimson accomplished in its atempts to better manage its investments in account receivable and inventory? b. Calculate...

Assets 2018 2019 Cash $17,000 $12,400 Short-term investments. 48,600 18,000 Accounts receivable 351,200 632,160 Inventories 710,200...

Assets 2018 2019 Cash $17,000 $12,400 Short-term investments. 48,600 18,000 Accounts receivable 351,200 632,160 Inventories 710,200 1,287,360 Total current assets $1,127,000 $1,949,920 Gross fixed assets 491,000 1,202,950 Less: accumulated depreciation 146,200 263,160 Net fixed assets $344,800 $939,790 Total assets $1,471,800 $2,889,710 Liabilities and equity 2018 2019 Accounts payable $148,600 $327,118 Notes payable 200,000 720,000 Accruals 136,000 284,960 Total current liabilities $484,600 $1,332,078 Long-term debt 323,432 1,000,000 Common stock (100,000 shares) 460,000 460,000 Retained earnings 203,768 97,632 ...

Dec. 31, 20Y3 Dec. 31, 20Y2 Assets Cash $269,150 $248,070 Accounts receivable (net) 97,500 89,090 Inventories...

Dec. 31, 20Y3 Dec. 31, 20Y2 Assets Cash $269,150 $248,070 Accounts receivable (net) 97,500 89,090 Inventories 275,250 263,780 Investments 0 102,200 Land 141,180 0 Equipment 303,680 233,220 Accumulated depreciation—equipment (71,100) (62,890) Total assets $1,015,660 $873,470 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $183,830 $172,070 Accrued expenses payable (operating expenses) 18,280 22,710 Dividends payable 10,160 7,860 Common stock, $10 par 54,850 42,800 Paid-in capital: Excess of issue price over par-common stock 206,180 118,790 Retained earnings 542,360 509,240 Total liabilities and...

Dec. 31, 20Y6 Dec. 31, 20Y5 Assets Cash $273,020 $256,310 Accounts receivable (net) 98,900 92,060 Inventories...

Dec. 31, 20Y6 Dec. 31, 20Y5 Assets Cash $273,020 $256,310 Accounts receivable (net) 98,900 92,060 Inventories 279,200 272,560 Investments 0 105,590 Land 143,210 0 Equipment 308,050 240,970 Accumulated depreciation-equipment (72,120) (64,980) Total assets $1,030,260 $902,510 Liabilities and Stockholders' Equity Accounts payable $186,480 $177,790 Accrued expenses payable 18,540 23,470 Dividends payable 10,300 8,120 Common stock, $10 par 55,630 44,220 Paid-in capital: Excess of issue price over par-common stock 209,140 122,740 Retained earnings 550,170 526,170 Total liabilities and stockholders’ equity $1,030,260 $902,510...

0 June 2017 30 June 2018 Cash 20,000 91,000 Accounts receivable 65,000 90,000 Inventories 58,000 62,000...

0 June 2017 30 June 2018 Cash 20,000 91,000 Accounts receivable 65,000 90,000 Inventories 58,000 62,000 Prepayments 10,000 12,000 Land 80,000 90,000 Equipment 280,000 320,000 Accumulated depreciation (60,000) (92,000) 453,000 573,000 Accounts payable 45,000 48,000 Loans 160,000 200,000 Share capital 200,000 230,000 Retained earnings 48,000 95,000 453,000 573,000 Additional information There were no disposals of land or equipment during the year. A $30,000 loan was settled through the issue of ordinary shares. There were no other repayments of loans. Profit...

Cash $ 25,300 Accounts Receivable 46,600 Allowance for Uncollectible Accounts $ 4,400 Inventory 20,200 Land 48,000...

Cash $ 25,300 Accounts Receivable 46,600 Allowance for Uncollectible Accounts $ 4,400 Inventory 20,200 Land 48,000 Equipment 16,500 Accumulated Depreciation 1,700 Accounts Payable 28,700 Notes Payable (6%, due April 1, 2019) 52,000 Common Stock 37,000 Retained Earnings 32,800 Totals $ 156,600 $ 156,600 During January 2018, the following transactions occur: January 2. Sold gift cards totaling $8,400. The cards are redeemable for merchandise within one year of the purchase date. January 6. Purchase additional inventory on account, $149,000. January 15....

Cash $ Current liabilities $ Accounts receivable $ Long-term debt $40,000 Inventories $ Common stock $ ...

Cash $ Current liabilities $ Accounts receivable $ Long-term debt $40,000 Inventories $ Common stock $ Fixed assets $ Retained earnings $60,000 Total assets $200,000 Total liabilities and equity $ Sales $ Cost of goods sold 1. Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.1x Days sales outstanding: 38 days Inventory turnover ratio: 4x Fixed assets turnover: 2.5x Current ratio: 2.5x Gross profit margin on sales: (Sales - Cost of goods sold)/Sales...

Ridgill industries currently has $51,500 in cash, $60,000 in accounts receivable, $63,750 in inventories, $21,500 in...

Ridgill industries currently has $51,500 in cash, $60,000 in accounts receivable, $63,750 in inventories, $21,500 in accrued liabilities, and $90,000 in accounts payable on its balance sheet. The firm’s production manager has determined that cost of goods sold accounts for 75% of the sales revenue produced where Ridgill’s sales are $456,250. Ridgill’s CFO is interested in determining the length of time funds are tied up in working capital. Use the information given above to answer the following questions. (Note, Use...

Question